Rising rates cut further into real estate purchases

Overall mortgage applications slid 1.7 percent last week on a seasonally adjusted basis from the week before, as interest rates continued to climb, the Mortgage Bankers Association reported today. The seasonally adjusted purchase index decreased by 2.7 percent to 407.4 from 417.7 the previous week whereas the refinance index decreased by 0.4 percent to 1,526.1 from 1,532.4 one week earlier. The refinance share of mortgage activity increased to 36.4 percent of total applications from 36 percent the previous week. The adjustable-rate-mortgage share of activity increased to 28.9 percent of total applications from 28.6 percent the previous week. The average contract interest rate for 30-year fixed-rate mortgages increased to 6.56 percent from 6.5 percent, with points including the origination fee decreasing to 1.1 from 1.2 for 80 percent loan-to-value ratio loans. The average contract interest rate for 15-year fixed-rate mortgages increased to 6.19 percent from 6.17 percent. Points incl...